At one point, all 30 stocks on the Dow and more than 90 percent of the S&P 500 stocks were at least 10pc below their 52-week highs.
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With the lease on her auto up, health insurance worker Deirdre Ralph of Wayne, New Jersey, had planned to get a less pricey vehicle and invest the savings.
“[It affects] my retirement and my living now”, said Stu Seidman, a Midwood, Brooklyn resident who was outside the stock exchange Monday afternoon, showing the sights to his cousins from Toronto. “Should I? Or should I just have a great old time?”
Stocks were down 8 percent in Shanghai and 3 percent in London, Paris and Frankfurt. But dramatic movement like that reminds many individual investors of real calamities of the not-very-distant past – particularly the market collapse of 2008. Meanwhile NASDAQ 100 index dropped 171.45 points or 3.52 percent to trade at 4,706.04.
It is only used when there is the potential for extreme market volatility. “Historically, we see a 10 per cent pullback about once a year and it usually doesn’t stop at 10 per cent. That doesn’t say stocks are poorly valued, it says when fears take over we see sharp market moves”.
Analysts had expected a 5.8% increase for a 510,000 annual rate last month, compared with a downwardly revised 481,000 rate in June.
“The return to a more traditional stimulus from China helped excite many investors”, said Jeff Kleintop, chief global investment strategist at Charles Schwab. US oil and gas companies have already lost about $310bn of market value this year.
The panic has underscored the scale of the challenge for Chinese leaders in seeking to curb excess investment and guide the economy toward a more sustainable pace of growth.
Despite the scary plunge in the stock markets worldwide, economists believe that Bay Area companies that have charged to sturdy profits will continue to hire and expand their operations and revenue. The price of U.S. crude rose $1.07, or 2.8 percent, to $39.31. But within thirty minutes, more than half the loss was recovered. Again, it remained above an annualized 4 percent both of those years.
U.S. stocks are plunging in early trading Wednesday, October 15, 2014, as traders flee risky assets. The yield on the benchmark 10-year note fell to 2.01 percent from 2.04 percent.
The People’s Bank of China said: “Currently, there are persisting downward pressures on the country’s economic growth”.
In Europe, Germany’s DAX fell 4.7 percent, while the CAC-40 in France slid 5.4 percent. The Nasdaq composite rose 109 points, or 2.4 percent, to 4,635.
The S&P 500 fell into correction territory – meaning a drop of 10 percent or more from a recent peak. Less than an hour after the open, the decline had been reduced to about 300 points. Worries about weaker demand from normally resource-hungry China added to global supply glut concerns.
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Stock futures plunged Monday in the United States, all but guaranteeing that the market will extend its sell-off after suffering the worst week in four years.
